Hirose News|November 3, 2014 12:00 PM

Some announcements that may impact the markets this week

Big news for this week!

Below are some announcements that may impact the markets this week:
(All Times are in GMT)

News Event Analysis 

On Thursday the BoE and ECB will make public their interest rate decisions.  Any movement away from market consensus may significantly increase volatility. It is also worth looking at any changes in the way that the individuals voted to get a clearer idea of where rates may be heading.


Market News 

The potential for increased volatility when trading Gold over the FOMC decision is always likely.  At the time of writing the central bank is likely to continue tapering the asset purchase program, so attention moves to the accompanying statement to get an indication of an eventual rate rise.  A dollar rally and Gold suppression is one outcome if the rhetoric downplays inflation expectations and champions progress in the labour market.  It all about intonation.



Binaries - stripping down to basiscs.

Last week I talked about Discipline.  If you follow the rules you can succeed.  It is possible!
This week is a quick recap on Money Management.

Money Management

Effective money management should be designed in conjunction with your trading strategy.  Remember, with a payout ratio of 80% you only need to be correct 55% of the time to make consistent profits.

A general recommendation would be to risk up to form 1 - 5% of your capital with the potential to increase this as your strategy develops and your confidence grows. If you have $100 in your account then trade 1 - 5 dollars.  First of all this will help preserve your capital and allow you to iron out any inconsistencies in a live environment. It will also give you a psychological advantage of not over leveraging your trades, one of classic mistakes of trading.


Another classic mistake of traders is to have unrealistic expectations.  If you anticipate you are going to make £100,000 in the next month with £1000 capital it is likely that you will ultimately have a negative trading experience.  A much more realistic expectation would be to look to achieve 20% per month, which equates to $200.  This is still a fabulous return on your capital, but the point is your money management plan should fit around your strategy, your available capital and your expected and actual returns.


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Happy trading!

The Hirose UK Team